IDEAS home Printed from https://ideas.repec.org/a/ozl/journl/v6y2003i3p383-408.html
   My bibliography  Save this article

The Irrelevance of Trade Union Recognition? A Comparison of Two Matched Companies

Author

Listed:
  • William Brown

    (University of Cambridge)

  • Paul Ryan

Abstract

Two UK business services companies are compared both to each other and to their common state-owned industry background in order to assess the implications of trade union recognition and changes in bargaining structure. Union recognition was abandoned by one company under the agenda of ‘individualisation’ and ‘personal contracts’ but retained by the other under that of ‘partnership’. The regulation of employment relations became decentralized at both companies relative to their ancestral public enterprises. The similarity of the companies in terms of products, technologies and institutional history means for the union recognition effect an approximation to a natural experiment. The evidence suggests secondary, and to some extent employer-friendly, effects for union presence upon operational attributes and economic performance, but major effects for the mix of decentralisation and the wider changes in markets, ownership and law that both accompanied and fostered decentralisation.

Suggested Citation

  • William Brown & Paul Ryan, 2003. "The Irrelevance of Trade Union Recognition? A Comparison of Two Matched Companies," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(3), pages 383-408, September.
    • Handle: RePEc:ozl:journl:v:6:y:2003:i:3:p:383-408
    as

    Download full text from publisher

    File URL: http://ftprepec.drivehq.com/ozl/journl/downloads/AJLE063brown.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Metcalf, David, 2002. "Unions and productivity, financial performance and investment: international evidence," LSE Research Online Documents on Economics 20072, London School of Economics and Political Science, LSE Library.
    2. David Metcalf, 2002. "Unions and Productivity, Financial Performance and Investment: International Evidence," CEP Discussion Papers dp0539, Centre for Economic Performance, LSE.
    3. Phillip B. Beaumont & Richard I. D. Harris, 1995. "Union De-Recognition and Declining Union Density in Britain," ILR Review, Cornell University, ILR School, vol. 48(3), pages 389-402, April.
    4. Booth,Alison L., 1994. "The Economics of the Trade Union," Cambridge Books, Cambridge University Press, number 9780521468398, September.
    5. Stewart, Mark B, 1990. "Union Wage Differentials, Product Market Influences and the Division of Rents," Economic Journal, Royal Economic Society, vol. 100(403), pages 1122-1137, December.
    6. repec:bla:econom:v:63:y:1996:i:249:p:1-18 is not listed on IDEAS
    7. Lars Calmfors, 1993. "Centralisation of Wage Bargaining and Macroeconomic Performance: A Survey," OECD Economics Department Working Papers 131, OECD Publishing.
    8. David Metcalf, 1993. "Industrial Relations and Economic Performance," British Journal of Industrial Relations, London School of Economics, vol. 31(2), pages 255-283, June.
    9. Brown, W & Hudson, M & Deakin, S & Pratten, C, 2001. "The Limits of Statutory Trade Union Recognition," Working Papers wp199, Centre for Business Research, University of Cambridge.
    10. Paul Smith & Gary Morton, 1993. "Union Exclusion and the Decollectivization of Industrial Relations in Contemporary Britain," British Journal of Industrial Relations, London School of Economics, vol. 31(1), pages 97-114, March.
    11. William Brown & Simon Deakin & David Nash & Sarah Oxenbridge, 2000. "The Employment Contract: From Collective Procedures to Individual Rights," British Journal of Industrial Relations, London School of Economics, vol. 38(4), pages 611-629, December.
    12. David Guest & Neil Conway, 1999. "Peering into the Black Hole: The Downside of the New Employment Relations in the UK," British Journal of Industrial Relations, London School of Economics, vol. 37(3), pages 367-389, September.
    13. W Brown & P Marginson & J Welsh, 2001. "The Management of Pay as the Influence of Collective Bargaining Diminishes," Working Papers wp213, Centre for Business Research, University of Cambridge.
    14. Nicholas Bacon & John Storey, 2000. "New Employee Relations Strategies in Britain: Towards Individualism or Partnership?," British Journal of Industrial Relations, London School of Economics, vol. 38(3), pages 407-427, September.
    15. Toke Skovsgaard Aidt & Vania Sena, 2005. "Unions: Rent Creators or Extractors?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(1), pages 103-121, March.
    16. Robert J. Flanagan, 1999. "Macroeconomic Performance and Collective Bargaining: An International Perspective," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1150-1175, September.
    17. David Metcalf, 1993. "Industrial Relations and Economic Performance," CEP Discussion Papers dp0129, Centre for Economic Performance, LSE.
    18. Peter Kuhn, 1998. "Innis Lecture: Unions and the Economy: What We Know; What We Should Know," Canadian Journal of Economics, Canadian Economics Association, vol. 31(5), pages 1033-1056, November.
    19. R Disney & A Gosling & Stephen Machin, 1993. "What has Happened to Union Recognition in Britain?," CEP Discussion Papers dp0130, Centre for Economic Performance, LSE.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zafiris TZANNATOS & Toke S. AIDT, 2006. "Unions and microeconomic performance: A look at what matters for economists (and employers)," International Labour Review, International Labour Organization, vol. 145(4), pages 257-278, December.
    2. Toke Skovsgaard Aidt & Vania Sena, 2005. "Unions: Rent Creators or Extractors?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(1), pages 103-121, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zafiris TZANNATOS & Toke S. AIDT, 2006. "Unions and microeconomic performance: A look at what matters for economists (and employers)," International Labour Review, International Labour Organization, vol. 145(4), pages 257-278, December.
    2. S. Dobbelaere, 2003. "Joint Estimation of Price-Cost Margins and Union Bargaining Power for Belgian Manufacturing," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/171, Ghent University, Faculty of Economics and Business Administration.
    3. Nir Klein, 2004. "Collective Bargaining and Its Effect on the Central Bank Conservatism: Theory and Some Evidence," Bank of Israel Working Papers 2004.07, Bank of Israel.
    4. Zagelmeyer, Stefan, 2003. "Die Entwicklung kollektiver Verhandlungen in Großbritannien: ein historischer Überblick," Discussion Papers 17, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    5. John H. Pencavel, 2004. "The Surprising Retreat of Union Britain," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980–2000, pages 181-232, National Bureau of Economic Research, Inc.
    6. Michèle Belot & Jan C. van Ours, 2004. "Does the recent success of some OECD countries in lowering their unemployment rates lie in the clever design of their labor market reforms?," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 621-642, October.
    7. David Metcalf, 1993. "Transformation of British Industrial Relations? Institutions, Conduct and Outcomes 1980-1990," CEP Discussion Papers dp0151, Centre for Economic Performance, LSE.
    8. Metcalf, David, 1993. "Transformation of British industrial relations? Institutions, conduct and outcomes 1980-1990," LSE Research Online Documents on Economics 20981, London School of Economics and Political Science, LSE Library.
    9. Aidt, T.S. & Tzannatos, Z., 2005. "The Cost and Benefits of Collective Bargaining," Cambridge Working Papers in Economics 0541, Faculty of Economics, University of Cambridge.
    10. Addison, John T. & Heywood, John S. & Wei, Xiangdong, 2001. "Unions and Plant Closings in Britain: New Evidence from the 1990/98 WERS," IZA Discussion Papers 352, Institute of Labor Economics (IZA).
    11. Greer, Mark, 2009. "Is it the labor unions' fault? Dissecting the causes of the impaired technical efficiencies of the legacy carriers in the United States," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(9-10), pages 779-789, November.
    12. Crafts, Nicholas, 2011. "British Relative Economic Decline Revisited," CEPR Discussion Papers 8384, C.E.P.R. Discussion Papers.
    13. Richard Disney & Amanda Gosling & Stephen Machin, 1994. "British Unions in Decline: An Examination of the 1980s Fall in Trade Union Recognition," NBER Working Papers 4733, National Bureau of Economic Research, Inc.
    14. Hasan, Rana & Mehta, Aashish & Sundaram, Asha, 2021. "The effects of labor regulation on firms and exports: Evidence from Indian apparel manufacturing," Journal of Comparative Economics, Elsevier, vol. 49(1), pages 183-200.
    15. van Ours, Jan C. & Belot, Michèle, 2000. "Does the Recent Success of some OECD Countries in Lowering their Unemployment Rates lie in the Clever Design of their Labour Ma," CEPR Discussion Papers 2492, C.E.P.R. Discussion Papers.
    16. Seppo Honkapohja & Frank Westermann, 2009. "Pay-setting Systems in Europe: Ongoing Developments and Possible Reforms," Palgrave Macmillan Books, in: Seppo Honkapohja & Frank Westermann (ed.), Designing the European Model, chapter 3, pages 82-121, Palgrave Macmillan.
    17. Stephen Machin, 1995. "Plant Closures and Unionization in British Establishments," British Journal of Industrial Relations, London School of Economics, vol. 33(1), pages 55-68, March.
    18. John Benson, 1994. "The Economic Effects of Unionism on Japanese Manufacturing Enterprises," British Journal of Industrial Relations, London School of Economics, vol. 32(1), pages 1-21, March.
    19. Crafts, Nicholas, 2012. "British relative economic decline revisited: The role of competition," Explorations in Economic History, Elsevier, vol. 49(1), pages 17-29.
    20. Brown, W & Hudson, M & Deakin, S & Pratten, C, 2001. "The Limits of Statutory Trade Union Recognition," Working Papers wp199, Centre for Business Research, University of Cambridge.

    More about this item

    Keywords

    Trade unions: objectives; structure and effects; Labour-management relations; Wages; compensation and labour costs;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ozl:journl:v:6:y:2003:i:3:p:383-408. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sandie Rawnsley (email available below). General contact details of provider: https://edirc.repec.org/data/becurau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.